CAIRO: The Egyptian Exchange (EGX) indexes rallied during Wednesday’s early and mid-session trading, bolstered by MSCI’s decision to keep Egypt Index from its emerging markets index.
The benchmark index EGX30 rose 1.47 percent to reach 8,693 points, down from Tuesday’s close at 8,567 points. The small and mid-cap index EGX70 hiked 1.63 percent to hit 612 points and the broader index EGX100 added 1.54 percent to reach 1,073 points.
CAIRO: MSCI Inc., the leading provider of indexes and other investment decision support tools worldwide, announced late Tuesday that it is no longer considering launching a public consultation on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index.
In its Annual Market Classification Review for 2014, MSCI stated that the decision followed a substantial increase in the country’s foreign currency reserves since the beginning of the year. Market capitalization gained around 4.9 billion EGP, registering 488.7 billion EGP, up from 488.7 billion EGP Tuesday. Turnover soared to 1.2 billion EGP by the mid-session, compared to a total of 780 million EGP yesterday.
Walid Helal, technical analyst at El Mokattam Securities Brokerage and member of The Egyptian Society of Technical Analysts (ESTA) said the market show a great performance after the benchmark rebounded from the resistance level of 8,500 points boosted by MSCI’s move that triggered strong purchases.
“Such purchasing power would drive the index to breach above its previous peak at 8,622 points amid high volume and great performance of the blue chips, topped by the market bellwether CIB and the real state stocks,” Helal told The Cairo Post.
The analyst said “EGX30 is likely to target 8,800 once again.”
Egypt’s bourse ended Tuesday trading on a slight decline and market capitalization lost around 1.1 billion EGP ($153.8 million,) hurt by profit taking after the market rally over the inauguration of President Abdel Fatah al-Sisi for four sessions in a row.
The benchmark dropped 0.31 percent to reach 8,567 points, EGX70 fell 0.3 percent to hit 602 points and EGX100 lost 0.06 percent to reach 1,056 points.